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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 11)

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QUESTION: 41 Exam Topic: 1, Exam Pool A

Which of the following statements about macroeconomic policy objectives is correct?

Governments always regard control of inflation as the most important policy objective
Conflicts between objectives mean that macroeconomic policy can never be regarded as successful
Expanding demand to reduce unemployment may mean that the balance of payments worsens
The pursuit of economic growth inevitably increases unemployment

Answer(s): C

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QUESTION: 42 Exam Topic: 1, Exam Pool A

The existence of a natural rate of unemployment means that

the short run Phillips curve is steeper that the long run Phillips curve.
nominal wages rise faster the prices in the long run.
governments cannot reduce unemployment below this level.
there is no trade-off between inflation and unemployment in the long run.

Answer(s): D

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QUESTION: 43 Exam Topic: 1, Exam Pool A

Which of the following is not likely to result from a fall in the rate of interest?

Increased consumption
Increased investment
A higher exchange rate
An increase in aggregate demand

Answer(s): C

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QUESTION: 44 Exam Topic: 1, Exam Pool A

When the economy is in recession, which of the following is least likely to reduce unemployment?

An expansionary fiscal policy
The central bank cutting interest rates
Retraining schemes for redundant workers
A regulation extending employment rights for newly-hired workers

Answer(s): D

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